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28.02.2019

Project Update

Dear ExchangeCoin supporters.

 

It has been a month since the Xult exchange was launched, and as you may have observed it is not performing as we expected. There are many reasons for this, but the most important factors that have limited Xult’s performance are the bearish market, fear, and uncertainties regarding cryptocurrencies. We implemented measures to make Xult unique by deciding to integrate the Google Assistant software as one of the features of the exchange; we also added the Facebook Chatbot. The first feature is working fine, and we are getting reasonable organic traffic daily. Unfortunately, Facebook Chatbot is still undergoing the mandatory Facebook review process, and we have no idea when it will be accepted.

 

I guess you all expected that the EXCC Team would launch an aggressive marketing campaign to promote the Xult and EXCC; unfortunately, we cannot afford to initiate a marketing campaign now because our budget is already quite low. You may wonder how that happened as we collected quite a lot of BTC during the ICO. This is a good time to explain our income and expenses.

During the ICO sale, we collected almost 650 BTC from sales of about 4,000,000 EXCC coins. 100 BTC was immediately paid out as the affiliate award to participants (15%). Another 120 BTC was paid out as TAX charges mandatory for active legal business. We also paid 50 BTC for the ICO marketing campaign and the incentives for influencers (believe it or not, we were compelled to offer them incentives to encourage the promotion of ExchangeCoin, and the referral program was only a small addition to their rewards). If you calculate these expenses, deducting the initial collection, you will discover the ICO actually generated only about 380 BTC.

 

Before we started working on the products, we had less than 60% of the ICO funds left. We decided not to exchange any Bitcoins to FIAT, which was a difficult process because we selected the Marshall Islands as the company’s residence (we did it to keep the anonymity of users) and couldn’t predict whether BTC price will increase or fall. So we were doing transactions with BTC when there was an invoice to pay or paid the invoice in BTC.

The details above reflect the beginning of the expenses we had to handle. Also, 25 BTC was used to pay for listing on the Stock Exchange, TopBTC, Coinexchange, and Cryptopia exchanges. The last listing-Cryptopia- received payment in their DOT coin and without giving any reasons, they failed to honor the agreement to list EXCC on their exchange. The administrators had promised to list EXCC and had given us an exact date for the listing. They changed their minds and returned the DOT coins which had depreciated to half the value. Perhaps, we even lost some BTC; however, it is a good thing that EXCC was not listed on the Cryptopia as the exchange is closed now.

 

More BTC have been used to pay for legal consultation fees, the preparation for obtaining a financial license in Poland (which we had to drop due to new AML regulations) and establishing the company in Malta. We also made payments to get our web pages designs, domains, and network infrastructure (servers, DDoS protection). However, a huge part of the budget was used to pay to advertise agency (they have not decided to disclose the company name), and for the services rendered by software house Pragmatic coders, and Xult developers.

 

The steady drop in BTC price increased our expenses every month. The event that finally collapsed our budget structure happened in November 2018, it was caused by two factors- the delay in Xult development (which caused the initial budget for it to double) and the fall in BTC value from 6.5k to 3.5k USD. In reflection, we admit that our team underestimated the cost of developing Xult. We chose the ‘best’ team to handle the project, but they disappointed us in so many ways. We cannot share the details with you because of an NDA signed between both parties. However, we can say that there were supposed to be many more features and the exchange was also scheduled for launch online in October.

 

The EXCC core team in cooperation with our Strategic Partner (Pragmatic Coders) have been working non-stop for 8-12 hours, 5-7 days a week to create and improve our products. Many of us have quit our permanent jobs as a sacrifice to focus our attention on the EXCC project completely. We accomplished a lot by delivering products such as the rebranded exchanger, a unique EXCC blockchain, a set of EXCC wallets and finally the Xult exchange to meet the top standards. Our listing requests were consistently rejected by Coinmarketcap, it was also difficult to collaborate with other coins and internet influencers to support our exchange. We contacted dozens of influencers on Twitter and Telegram with proposals to join our team and support us, but there were no positive replies.

 

All our attempts to create more awareness for the ExchangeCoin brand worked for only a short time. The marketing agency failed to increase the population of our online community, even with the countless efforts and strategies used to achieve that goal. It seems we worked only with a small closed group that made up the community. We believe this is one of the main reasons the EXCC price is so low.

 

At the moment, the EXCC project is facing a difficult situation, but we are doing our best to stay on track. We recently resigned from the marketing agency and put a hold on the work on the EXCC-DEX until we have secured enough funds to proceed with the development. Please be assured we are 100% committed to the project. We are working even harder than before to improve Xult and achieve our goals. Hopefully, the market will experience a bull run (better this happens sooner than later); we will make the EXCC great. There are only a few of us left on the board that’s why you haven’t been getting daily Tweets, Telegram and Discord messages. We are doing our job and will contact you when there is great news to share. Please also note that there were so many promising and reputable projects that had to close their businesses recently due to different reasons, but we are still here and doing our best.

 

Regards

EXCC Team

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